Subject: Re: OT: Tax-free living: Monaco or Beaches?
If you live in the US and want to not pay tax, you can do this by obtaining a passport (citizenship) from another country (such as through marriage) and then renounce your US citizenship.

- Manlobbi

Actually what happens when you do this, is that all of your tax-deferred retirement accounts immediately distribute their balances and they are immediately taxed by the US government as income.

Puerto Rico used to offer (maybe still does) a deal for high net-worth US citizens that move there (and get a bill passed in the PR legislature) the ability to avoid paying US taxes for ten years on local income. A number of years ago we went through the process and then did a test-run of living there for a month. At the end I understood why many Puerto Ricans move to NYC, but few from NYC move to Puerto Rico - and we walked away from the deal. (Subsequently, the island was hit by a hurricane and we considered ourselves lucky to have dodged that bullet regardless of the potential tax savings).

Jeff